This gives you two ways to protect yourself:If the stock price falls, your options contract becomes worth more money. The premium: You pay a fee up front (called the premium) to buy the options contract. The stock price rises, and the original stock position gains valueIf the stock price rises, your shares gain value. The maximum loss per share = (current stock price − strike price) + options premium. The break-even price = current stock price + options premium ($104 per share).